Funding for Zero-down Home Loan Programs Restored by President Barack Obama
Before that I tell you the detail of the announcement. I would like to share with you the historical background of the Ninja Loans.
Ninja Loans (“no income, no job or assets” Loans)
These loans were the invention of the two big real estate organizations Freddie/Fannie. These were the organizations due to which we have faced the mortgage meltdown that cause the current economic crisis.
These can be known as an invention of Democrats.
Historical Events that supported financing for Low income people
Here I have mentioned all those events in an approximate sequence during which these loans were authorized:
- President Jimmy Carter has passed the Community Reinvestment Act (CRA) of 1977 taking effect from the pressure imposed by the groups like ACORN. At that time there was a practice of redlining. Acc